Category: Universal Credit

MPs ‘left with no option but to vote down’ unscrutinised new Universal Credit regulations

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Over recent months, MPs on both sides of the House of Commons have pleaded with the Government not to go ahead with transferring claimants from existing benefits to the much troubled Universal Credit until it can guarantee that every claimant would be migrated safely onto the new benefit and none would be left without money. 

Today (4 November) the Commons Work and Pensions Select Committee is publishing correspondence with Alok Sharma MP, Minister of State for Employment (see below), about the Government’s plans for moving people claiming existing benefits onto Universal Credit, ahead of new rules on so-called “managed migration” being laid in Parliament. The Government announced in October that “managed migration” of claimants on to Universal Credit, originally intended to begin in early 2019, would be pushed back.   

The Government’s original plans have been widely criticised by front-line charities and others, with predictions that vulnerable people could be plunged deeper into poverty and even that some people entitled to benefits could be left with no income whatsoever. The rules have been subject to a review by the Social Security Advisory Committee (SSAC), who presented their report to DWP earlier in the autumn.

Minister refuses request to share new rules on Managed Migration

In a hearing on 18 October, the Committee asked the Minister to commit to sharing the new version of the rules with the Committee before it was formally given to Parliament, to allow the Committee to determine whether the serious concerns already raised about the plans, including in evidence to the SSAC, have been addressed. In the response being published today the Minister refuses that request. 

The Chair has urgently written again to the Minister (also attached), saying: “Given the strength of the concern about the draft regulations published in June… we can only hope that the revised version has changed beyond recognition […] if the Government has accepted the SSAC’s advice, and has fully addressed the very serious concerns expressed to the SSAC during its consultation, then our scrutiny could be very quick and need not cause any significant delay. Might I therefore ask please whether you could urgently reconsider this decision?”

Chair’s Comment

Comment from Work and Pensions Committee Chair Frank Field MP:

“Having got it so disastrously wrong with its first attempt, you’d think that the Government would want to make sure its plans to move vulnerable people onto Universal Credit stood up to robust scrutiny. Instead, it is choosing to push these regulations through Parliament with no chance for MPs to make amendments. 

That hardly inspires confidence that it has really made the changes needed to ensure that its actions won’t plunge people deeper into poverty. If its new plans don’t have enough safeguards to protect the vulnerable, then MPs will be left with no option but to vote them down.”

See: 

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Universal Credit is set to cost billions more than legacy benefits, says government’s spending watchdog

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Despite the widespread concerns about the financial hardships that Universal Credit has created for many people , the government’s official spending watchdog says that the Conservative’s flagship policy will, nonetheless, cost the UK billions more than the legacy benefits system over the next five years. 

In its response to the Autumn Budget, the Office for Budget Responsibility (OBR) changed its previous prediction in March 2018 that the government’s controversial welfare overhaul will save public money. Instead, the OBR now forecasts that Universal Credit will cost ‘the taxpayer’ £7.1bn more than the current system between 2019/20 and 2023/24.

That amount also includes new funding for the programme announced by chancellor Philip Hammond on Monday in response to the serious concerns raised by MPs about the impact Universal Credit is having on people.

However, the OBR added that even without these measures, which include an extra £1bn for transition support and a £1.7bn-a-year plan to raise the work allowance threshold for some claimants, Universal Credit would have a net cost of £1.9bn over the next five years.

Perhaps an analysis of the costs of the administrative and delivery framework would be useful. 

The OBR say: “On a pre-measures basis UC is now projected to be more expensive than the legacy system would have been from 2019-20 to 2022-23, having been less expensive (i.e. generating a net saving to the Exchequer) in our March forecast. This reflects many changes, some down to revising key assumptions that can now be tested against outturn data relating to the 1 million or so cases now on UC.” 

In its Economic and Fiscal Outlook based on the Autumn Budget, the OBR said: “Our pre-measures forecast revisions were sufficiently large to push our estimate of the effect of [Universal Credit] on welfare spending from a net saving to a net cost in most years – the first time that it has been shown as a net cost on average since our March 2015 forecast.”

The watchdog added :“Once Budget measures are factored in, the marginal cost moves significantly higher.”

The high cost of Universal Credit indicates that the political motivation behind this radical reform is purely ideological, rather than being based on any economic necessity. ‘Making work pay’ is about punishment and discipline – ultimately it is about driving people into any work available, regardless of job security and conditions, regardless of whether the wages meet the costs of living.

Meanwhile in work poverty is growing significantly. Deregulated, supply side labour market policies drive wages down. Reducing welfare support creates a desperate reserve army of labour who have absolutely no collective bargaining powers to improve work conditions. 

Other comments of interest include: “The Department for Work and Pensions (DWP) is subject to ongoing legal challenges. We asked the Government whether there is a detailed central list of ongoing DWP legal challenges and the likelihood of losing them, and why it takes a different approach to recording these DWP contingent liabilities than it does to tax-related legal challenges recorded in HMRC’s departmental accounts.

“The Treasury stated that it is working to improve the reporting and managing of DWP’s legal cases in accordance with steps set out in its 2018 Managing Fiscal Risks report.”

The OBR report also confirms that disabled people in receipt of severe disability premia will not be moved onto Universal Credit until provision is made to ensure the premia are integrated to ensure people on legacy benefits such as Employment and Support Allowance are not left worse off through migration or through a change of circumstance that means a new claim has to be made. This follows a court ruling that the loss of disability premia is unlawfully discriminatory. 

The court defeat for the government indicates once again how unfit for purpose Universal Credit is. Rather than being the ‘simplified’ system as promised, the administration of the welfare provision has become subject to a series of post hoc amendments because of the original model’s incorporated and systemic abuse of people’s human rights and violation of equality legislation. These are being uncovered by ongoing legal challenges.

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Former Universal Credit staff reveal call targets and ‘deflection scripts’

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Joanne Huggins worked on the universal credit helpline in the Grimsby service centre for nearly two years before quitting in April. She had worked in social housing and understood the social security system but was still surprised by what she found. I did not expect it to be so fundamentally flawed,” she told Patrick Butler, in a Guardian interview back in July.

She had hoped she would be able to help resolve the problems reported by claimants, some of whom would call in upset after payments were late, or were unexpectedly reduced, but soon found the system resistant to offering quick or easy assistance.

“It felt like these were not people that you serve, not customers, not important, but people who get in the way of what you are are trying to do, which was to hit call targets,” she said.

She said it was “heartbreaking” having to block or deflect vulnerable claimants, telling them that they would not be paid, or would have to submit a new claim, or have a claim closed for missing a jobcentre appointment, or be sanctioned – a penalty fine for breaching benefit conditions – or go to the food bank.

She added that the system felt crude rather than intuitive, and her role often felt adversarial. Huggins said: “It was more about getting the person off the phone, not helping.”

Bayard Tarpley also worked in the Grimsby centre. He said the system was not only avoidably complex but failed to anticipate that claimants may find it difficult. Tarpley gives countless examples of how his experience showed that the system is designed irrationally, or clumsily, or in a way that confuses staff as well as claimants and leads directly to people not receiving the lifeline financial support they need and are entitled to.

Tarpley said:

“Universal credit is like one of those old Disney cartoons with a leaky boat. The holes spring up, and Bugs Bunny or whoever sticks a finger in, but then a new hole appears, and they end up sprawled across the boat trying to block all the leaks. The holes aren’t the problem, though, it’s the boat” 

Staff often get confused by the welter of system updates, guidance and memos.

“This results in a massive variation in understanding between agents, teams and especially service centres, meaning that claimants can call three times in a row and get three different answers to a query.”

He added:

“This piled excessive responsibilities on to call centre staff. When people call up with very specific questions about how their terminal illness affects their benefit, it’s me that answers that question. It’s me that has to judge whether it’s appropriate to ask a claimant if her third child is the result of sexual assault because it may affect her benefit entitlement.

“The decisions I make on a daily basis have an impact on how quickly someone is able to pay their landlord, turn the heating back on, get their children to school. I have made decisions that have resulted in people being evicted, and decisions I have made have led people to tell me that it is the reason they are self-harming.

“I would argue that I am scarcely qualified for any of those things, never mind all of them.”

Now, the former Universal Credit service centre advisor, Bayard Tarpley, has revealed details of a ‘deflection script’ that staff are given to get claimants off the phone. Speaking to Sky News, ahead of a major report on Universal Credit that is due to be released by the Public Accounts Committee (PAC) today, Tarpley echoed earlier concerns raised by Huggins. about call targets. 

He said:  I think certainly from a frontline position I wasn’t particularly confident that Universal Credit was meeting that goal of helping people work and making them better off based on their circumstances.”

He added:

“We were encouraged to end the call sooner so that we could quickly get through things.

“There didn’t seem to be a lot of changes that were specifically there to support claimants.

“So there was there is something called the deflection script. It was a piece of paper that explains what to do when someone calls in.

“Even if a problem could be solved then and there on the phone we were encouraged to do everything in our power to get them to hang up the phone and do that online.”

The Department for Work and Pensions (DWP) released a statement that denies the existence of such a deflection script but added that “staff may use aides to effectively deal with claimants.”

A spokesperson added: “We take the training of our call handling staff extremely seriously to ensure they are prepared to handle a range of enquiries, regardless of how long they might take – there is no policy to get callers off the phones.

“Since 2010, one million people have been lifted out of absolute poverty, with on average 1,000 more people going into work each and every day since 2010.”

Whistleblower Tarpley concludes:

The DWP’s ‘culture of denial’

With the chancellor under intense pressure to act in his budget next Monday to cushion the impact of the the universal credit system, the public accounts committee has warned that the government has ignored the concerns of those at the sharp end. The committee took evidence from charities and local authorities, which told MPs they had seen sharp increases in rent arrears and food bank usage among new recipients of universal credit, not least because of the five-week wait for the first payment.

The DWP’s own survey found that 40% of people were experiencing financial difficulties eight or nine months into their claim, and work and pensions secretary Esther McVey recently admitted the rollout would leave “some people worse off”.

The committee has said McVey’s department has repeatedly been unresponsive to on-the-ground evidence about the practical problems with universal credit, and what it called the “unacceptable hardship” faced by many.

“The department’s systemic culture of denial and defensiveness in the face of any adverse evidence presented by others is a significant risk to the programme,” the MPs said, citing the DWP’s response to an earlier critical report by the National Audit Office (NAO).

McVey was forced to apologise to parliament earlier this year, when the NAO’s head, Sir Amyas Morse, complained that she had misrepresented the report as positive, when it had called for a “pause” in the rollout of universal credit.

Several of the organisations that gave evidence told the committee they had a positive relationship with local jobcentres, but found it impossible to influence the DWP nationally.

Meg Hillier, the public accounts committee’s chair, said: “This report provides further damning evidence of a culture of indifference at DWP – a department disturbingly adrift from the real-world problems of the people it is there to support.”

The committee said the help available to people moving over to universal credit, known as “universal support”, which is funded by the DWP but commissioned by councils, is patchy, and “not fit for purpose” – because it does not include debt advice, for example

By June this year, 980,000 people were already in receipt of universal credit, with another 7.5 million due to move over to the new system. So far, only new claimants, or those whose circumstances have changed, have been moved on to universal credit.

The government recently delayed so-called “managed migration”, which will allow existing claimants to be moved across, from January 2019 to later in the year, apparently because it feared being defeated by backbench rebels in parliament if it tabled the necessary regulations.

The committee criticised the DWP’s claim that switching to universal credit will save taxpayers up to £8bn, by coaxing more people back into the workforce. They said that the department cannot say how it will measure whether the targets have been hit – or how many of those moving into work would have done so under the old system anyway.

A DWP spokesperson said: “We will carefully consider the findings in the report – a number of which we are already working on. For example, we have recently begun a new partnership with Citizens Advice to deliver better support to the most vulnerable, and are working with stakeholders to ensure the Managed Migration process for people moving onto Universal Credit works smoothly. 

“So far this year we have already announced several improvements to Universal Credit, such as plans to reinstate housing benefit for vulnerable 18-21 year olds, making direct payments to landlords, offering 100% advances and providing an additional 2 weeks of housing benefit for claimants.”

The so-called improvements are very clearly not enough. Legacy benefits were calculated to meet very basic living costs. Because universal credit leaves many people worse off, it means that they are facing unacceptable levels of extreme hardship and situations of absolute poverty – where people can’t meet their fundamental survival needs such as food, fuel and shelter. In this respect, Universal Credit is now not just failing our contemporary standards of addressing poverty but those of William Beveridge in the 1940s.

Until that issue is addressed, universal credit will continue fail the people it was allegedly designed to support. 


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CEO of charity speaks out about the devastating impact of Universal Credit despite threats

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The founder of a homeless charity has claimed she won’t be able to receive any Lottery funding unless she stops publicly criticising universal credit and the government. She claimed an official told her to not express any more of her opinions about universal credit and the government or she won’t receive any money.

The Big Lottery Fund is an executive non-departmental public body, sponsored by the government’s Department for Digital, Culture, Media and Sport.

The charity was set up last year to help homeless and vulnerable people in Torbay. The charity founder and chief executive, Ellie Waugh, has previously said that an unofficial policy of ‘social cleansing’ is being applied to remove homeless people from Torquay town centre. 

The charity has been offering support services and food to the homeless and disadvantaged groups from its offices in Castle Road, opposite Torquay Town Hall.

Waugh said it had been feeding around 200 people a week during the summer, with up to 500 in the winter, and there was a group of around 20 regular visitors who spent a lot of time at the centre.

Last December the charity applied to the Conservative Torbay Council for permission to use the building as an advice centre so the services could carry on being provided at the building.

Earlier this year a business leader controversially accused the charity of ‘attracting more homeless people to the area’, and blamed that for causing a fall in takings at some shops.

Waugh said the charity was told in July it had to stop feeding people and to only permit a maximum of five clients at a time in the building. 

In January Waugh said the charity was asked by a senior Torbay councillor to close early on a day when major investors were coming to discuss a multi-million development – because homeless people were an ‘eyesore’. And there was more controversy a month later when Torquay Chamber of Trade chairman Susie Colley blamed the charity for an increase in rough-sleeping and begging in the town centre, which was ‘harming trade and seeing shop takings fall.’

In March, business people in the seaside town started naming and shaming beggars they believe to be “fake” as part of a campaign to drive them off the streets. The Sun, however, has claimed that these business people are a part of the charity, whic of course is rubbish. The vigilante campaign was started by a pub owner, Ashley Sims, who threatened to ‘name and shame anyone falsely claiming to be homeless.’ The campaign was heavily criticised by the police. 

Many people support the charity’s work at the centre and a petition with 81 names backing the application was handed in to Torbay Council in May.

In October the charity said it had found homes for more than 600 people and jobs or training for 150 more. 

One supporter wrote: “This is a vital service needed for the vulnerable, homeless and those in need in the local community. It provides an excellent service to the community and is of benefit to the area.” 

Another said: “I feel that this service is a major asset to Torbay; its service provided to me was crucial to being re-homed and they also provided a great general care in my health and well-being.”

Now, Waugh has chosen to speak out about the devastating impact of Universal Credit despite threats from the Council and funders, because she thinks the public needs to know how dire the situation is for many people. Charities are not permitted to criticise government policies such as Universal Credit and may lose funding and aid as a consequence.

The charity were due what would have been their first grant from the Big Lottery Fund but Waugh said they were “screwed” after speaking out and would now probably receive nothing.

Trustee Shirley Holbrook said she was in the room when lottery official allegedly made the statement. She said: “She said categorically if we were to receive a big lottery grant we would be unable to speak out against Universal Credit or any other government measure that affected our clients adversely.

“We are not a political organisation. We speak out about homelessness because we deal with the results of it every day.” She said the main problem with Universal Credit was it was paid at the end of the month, while the old system saw claimants get cash at the beginning of the month.

Holbrook added that the charity has launched a crowdfunding page to make up for the money they have missed out on from the Big Lottery Fund. The charity helps up to three hundred people per week and is run by Waugh and another full-time member of staff with a team of 17 volunteers.

A spokesperson for Big Lottery Fund said it funded Humanity Torbay £10,000 in July 2017 which was announced as part of its publicly disclosed funding announcement. They said it was actively working with them on their further application for £130k and no decision has been yet made on this.

The spokesperson added: “It is incorrect to suggest we would withhold funding from any organisation on the basis of what they say publicly on social issues. We fund thousands of projects that are run by organisations that, in the course of their other activities, may also campaign on a range of topics or issues. “While we are clear – and it’s our stated policy – that our funding cannot be directly used for such activity, we do not prevent any grant holder from voicing their views on an issue that is important to them, their organisation or community.”

This is one of Waugh’s online accounts of the desperation, harm and utter destruction of people’s lives that Universal Credit is inflicting on increasing numbers. She regularly posts videos online in which she talks about the impacts of the controversial new benefits system on the homeless.

Ellie Waugh speaking out: “It’s absolutely awful out there”.


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Meet Helena McAleer: a humane, thoroughly decent private landord who cares about her tenants

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Five days ago, I wrote an article about why private landlords are calling for a ‘major overhaul’ of universal credit. I discussed why some are refusing to let properties to ‘high risk’ universal credit claimants. Mortgage lenders often refuse to give mortgages to buy-to-let landlords with tenants who claim welfare support. Universal credit has created further concern because of the larger shortfall in rent allowance and rent price, and the new policy is leaving large numbers of tenants struggling with hefty arrears in part because of the long wait for the claims to be processed, too. 

I also talked about Helena McAleer, a private landlord who was reduced to tears after NatWest said she had breached her mortgage terms by letting her two-bedroom property in Belfast to a tenant in receipt of support from the state. The tenant is an older woman, who suffers from mental health problems and would struggle with the moving process, Helena explained.

She was given the cruel ultimatum of making her tenant homeless or footing a £2,500 bill to leave the NatWest deal, after asking for a further advance from the lender. 

She told Mortgage Solutions: “I was angry at the fact that another human being could ask me to kick out another human being.

“It was very black and white…  they don’t think about that person, you’re just an anonymised piece of data… that’s what hurt me, that’s not fair.”

She added: “[The tenant] is a vulnerable older lady, she has mental health issues; I’m not putting her out on the street.”

The marketing innovation manager remortgaged to NatWest in January through broker Habito, providing information about her tenant’s situation to the digital adviser.

But when Helena approached NatWest about taking money out of the property to buy in London in September, the lender said it had not been disclosed that the tenant was in receipt of government support.

She refused to remove the tenant and asked NatWest to reconsider.

The tenant has been in place since 2016 and is set to stay for the foreseeable future.

Helena has been in touch to tell me about her petition, which calls on the government to stop banks discriminating against welfare recipients.

She says “Some banks refuse mortgages to buy to let landlords who let to welfare recipients. My bank instructed me to “seek an alternative tenant” if I wished to keep my mortgage because my tenant was a welfare recipient.

“The government must close these loopholes, as they are a breach of basic human rights.

“A survey of 1,137 private landlords for housing charity Shelter in 2017 found that 43% had an outright ban on letting to such claimants (welfare recipients).”

This isn’t only because landlords are discriminatory, many banks prohibit landlords from renting to reliable tenants just because of their circumstances. Welfare recipients are not 2nd class citizens they deserve access to safe, secure, habitable, and affordable homes as is their Human Right.

Helena goes on to say in her Facebook post: “You may not know this but I have a buy-to-let mortgage with NatWest and on the 27th September they asked me to “seek an alternative tenant” simply because my tenant is in recipient of “Social Security/Government benefits” or my other option is to find a new mortgage elsewhere and pay a £2500 penalty for moving.

“I was beyond disgusted by the statement. Actually more than that I cried my eyes out for hours, how could a bank, a person at a bank make the decision that I had to kick someone out of their home simply because of their circumstances, because fundamentally that’s what they are asking me to do.

“She has been an extremely reliable tenant for over 2.5 years and I have only had the NatWest mortgage for 6 months. They initially didn’t question the fact that the rent money was coming into my account from the NIHE (Northern Ireland Housing Executive), when questioned on this they said it wasn’t their job to check where the money was coming from only that i was receiving it. So as far as I am concerned they failed to do their due diligence and neither I nor my tenant should suffer because of this. They stated “the mortgage should not have been agreed by our underwriters if NatWest were aware the payments were coming from DSS.”

“Everyone here knows me, you know there’s no way I’d ever ever make someone homeless, so I am currently in the process of moving my mortgage to a more ethical provider and leaving Natwest, I mean moving my current account savings accounts the whole shebang. And knowing me, you’ll know that I won’t stop there, I will always fight to the end for something I believe to be right.

“However, what I have since discovered since this began, is that this policy is symptomatic of discrimination across the entire buy-to-let banking system. “A survey of 1,137 private landlords for housing charity Shelter in 2017 found that 43% had an outright ban on letting to such claimants (benefit recipients). A further 18% preferred not to let to them.” But this isn’t because landlords are necessarily discriminatory, that’s not the real story, this is because banks prohibit many landlords like myself from renting to reliable tenants just because of their circumstances. These people are not second class citizens they deserve the opportunity to live to the same standards as the rest of society.

“The facts are, that there are more than one million families in the UK waiting on the government to provide social housing. This could be alleviated by landlords being allowed to let to these families. According to Shelter, eight million people are only one paycheck away from being unable to pay for their home. This issue could affect us all, not just those currently receiving social benefits.

“In the last few weeks, I have spoken with several charities who have pledged their support, including Shelter who are supporting from a legal perspective, the battle isn’t over yet, so watch this space. I have spoken with the Labour Minister for housings’ office who is speaking directly with Natwest. The story has been published in the press and i’ve started this petition. I’ve been busy .

“So this is why I now need your help, I created this petition to get the government to put legislation in place that would prevent banks, even banks owned by the state, that’s you and me, from discriminating against people on benefits fundamentally denying them their basic human right to safe, secure, habitable, and affordable homes.

“To make this a success I need the support of as many people as possible, I need you to sign and share this petition as far and wide as possible to get the government to take action We need 100,000 signatures (that’s doable) to have this debated in parliament.

“Please sign the petition and share on Facebook, twitter and any other social platforms you happen to be on.

“We have a real opportunity to make a difference to so many people’s lives. We are lucky to live in a world where determined individuals can make an impact on the world in ways that might not have been possible before.

“If anyone has any contacts who would like to know more information to help me spread this story further, please get in touch.”

Please sign the petition and share this widely. 

Thanks.

Thank you Helena for your hard work. And for caring.

Some further information

Shelter has a guide on ‘convincing’ a landlord to rent to you. It says local councils may keep lists of private landlords who accept tenants on housing benefit, and that some websites such as SpareRoom allow you to select a “DSS OK” filter. There is also a website called Dssmove that connects tenants with agents and landlords “that say yes to DSS”.

Smartmove can also help tenants make a claim for housing benefit and Discretionary Housing Payments.

The House of Commons Library has produced a briefing on this issue. 

 

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Related

Why private landlords are calling for ‘major overhaul’ of Universal Credit, many refuse to let properties to ‘high risk’ universal credit claimants

 


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Why private landlords are calling for ‘major overhaul’ of Universal Credit, many refuse to let properties to ‘high risk’ universal credit claimants

A 2011 survey found the most common reasons for landlords to refuse tenants were antisocial behaviour, unpaid rent and damage.

Earlier this year, research by Heriot-Watt University highlighted that England has a backlog of 3.91 million homes, meaning 340,000 new homes need to be built each year until 2031. This figure is significantly higher than the government’s current target of 300,000 homes annually. 

The findings comes as rough sleeping has risen by 169 per cent since 2010, while the number of households in temporary accommodation is on track to reach 100,000 by 2020 unless the government takes steps to deliver more private, intermediate and social housing. The annual Homelessness Monitor shows that 70 per cent of local authorities in England are struggling to find any stable housing for homeless people in their area, while a striking 89 per cent reported difficulties in finding private rented accommodation.

Affordability is a big issue in the private rented sector and a major hurdle to many prospective tenants. The way in which housing benefit is calculated for private tenants has changed drastically in the decade, due to the introduction of the Local Housing Allowance system, (LHA), the erosion of both housing benefit and council tax support and the continued government cuts the welfare system. These changes have made some landlords wary and reluctant to rent to tenants in receipt of benefits.

Most tenants receive significantly less housing benefit than they are expected to pay in rent. While there is some conditional support available for some tenants, in the form of Discretionary Housing Payments (DHP), landlords say they are concerned about what they see as an increased risk of rent defaults amongst tenants relying on benefit payments. DHP is a solution only for the short term. 

Evidence in England shows that increasing numbers of private landlords are not renting to Housing Benefit claimants. The National Landlords Association gave evidence to the House of Commons Works and Pensions Committee stating that “…in the last three years there has been a 50% drop in the number of landlords taking people who are on benefits. It is now down to only one fifth; 22% of our landlord members whom we surveyed say they have LHA tenants, and 52% of those surveyed said they would not look at taking on benefits tenants.”

There are also significant worries that the impact of Universal Credit will make renting to people claiming housing benefit even less attractive to landlords. 

The Residential Landlord Association (RLA) have called for an urgent overhaul of how universal credit is paid, as more than half of landlords applied for the benefit to be paid to them instead of the tenant, which, on average, took more than two months to arrange.

David Smith, RLA policy director, said: “Our research shows clearly that further changes are urgently needed to universal credit. 

We welcome the constructive engagement we have had with the government over these issues but more work is needed to give landlords the confidence they need to rent to those on universal credit.

“The impact of the announcements from the autumn budget last year remain to be seen. However, we feel a major start would be to give tenants the right to choose to have payments paid directly to their landlord.”

As well as meaning claimants could get into debt, the system serves to dissuade private landlords from taking on universal credit tenants.

Last year, research carried out by Politics.co.uk revealed that private landlords across the country are refusing to rent out properties to people who claim Universal Credit. Sixty-nine per cent of estate agents contacted in areas where the new benefit has been rolled out said they had no landlords currently on their books who would accept Universal Credit claimants.

The head of policy at the National Landlords Association (NLA), Chris Norris said:

While the NLA supports the concepts behind Universal Credit, it is clearly divorced from the realities of many tenants’ lives. Problems with its implementation and caps to housing benefit mean that many landlords now view letting to tenants in receipt of housing benefit or Universal Credit as high risk, because they simply do not have the confidence that rent will be paid to them on time.” 

I can’t help wondering precisely which ‘concepts behind Universal Credit’ the NLA actually supports, given the acknowledgement that it clearly isn’t meeting ‘many tenant’s’ needs.

Anti-discrimination legislation protects people from both direct and indirect discrimination.  Indirect discrimination occurs where a policy, which is not discriminatory in itself, if likely to impact disproportionately on people who are protected under the Equality Act.  Some people may argue that this type of policy could be seen as indirect discrimination if, for example, housing benefit claimants were predominantly female, disabled or predominantly from an ethnic minority group. However, this type of discriminatory practice can be legal if it can be reasonably justified.  

A landlord whose mortgage lender imposed certain conditions on him or her would be justified in adopting this practice, and some mortgage lenders already refuse to give mortgages to buy-to-let landlords with tenants who claim welfare support..

Several major lenders have denied rumours that they are planning to refuse to offer mortgages to buy-to-let landlords with tenants claiming universal credit. A survey of almost 3,000 landlords with universal credit claimants as tenants by the Residential Landlords Association (RLA) in March and April 2017 showed 38 per cent experienced tenants going into rent arrears – up from 27 per cent in 2016. The average amount at the time owed in rent arrears by universal credit tenants to private sector landlords was £1,150, the RLA stated. 

However, now claimants owe on average almost £2,400 in rent payments, an increase of nearly 50 per cent on the previous year, where the figure was around £1,600, the RLA have said.. Almost two thirds of private landlords have seen tenants receiving universal creditfall into rent arrears, new research shows, amid growing concern the new benefit system is pushing people into poverty.

At the time of the survey those claiming Universal Credit faced at least a six-week wait before receiving their first payment, meaning they are already two months in rent arrears by the time of the first payment, the RLA stated.

Paul Shamplina, founder of eviction service Landlord Action, told FT Adviser: “The landlords we speak to on a daily basis through our advice line are increasingly concerned because for many, rent arrears could mean they fail to meet their own obligations to lenders.  

“Some lenders are even stipulating buy-to-let loans will not be available where tenants are ‘benefit dependent’ and so as a result, landlords are focusing on private tenants where they can achieve higher rents and the risk of arrears is less.

Many lenders do not lend to landlords with tenants who are welfare recipients, but a number of those that do said they had no plans to change their policies as a result of the switch to universal credit.

However, the State-backed lender NatWest told one of its private landlord customers to evict a vulnerable tenant because she was claiming housing benefits or pay up thousands of pounds in early repayment charges and find another lender. This was after digital broker Habito admitted incorrectly advising the customer. 

Helena McAleer was reduced to tears after NatWest said she had breached her mortgage terms by letting her two-bedroom property in Belfast to a tenant in receipt of support from the state. The tenant is an older woman, who suffers from mental health problems and would struggle with the moving process, according to McAleer.

McAleer was given the harsh ultimatum of making her tenant homeless or footing a £2,500 bill to leave the NatWest deal, after asking for a further advance from the lender.

She told Mortgage Solutions: “I was angry at the fact that another human being could ask me to kick out another human being.

“It was very black and white…  they don’t think about that person, you’re just an anonymised piece of data… that’s what hurt me, that’s not fair.”

She added: “[The tenant] is a vulnerable older lady, she has mental health issues; I’m not putting her out on the street.”

The marketing innovation manager remortgaged to NatWest in January through broker Habito, providing information about her tenant’s situation to the digital adviser.

But when she approached NatWest about taking money out of the property to buy in London in September, the lender said it had not been disclosed that the tenant was in receipt of government support.

McAleer refused to remove the tenant and asked NatWest to reconsider.

The tenant has been in place since 2016 and is set to stay for the foreseeable future.

McAleer said: “I have no doubt the tenant will be there for many years which, as a landlord, is great to know.

“Long-term security and payments, I couldn’t ask for a better tenant.”

But NatWest said it would not change its position.

A spokeswoman for the lender said: “The bank has specific lending criteria and is not able to offer mortgages in certain circumstances, including where the applicant or broker has advised they want to let the accommodation to Department of Social Security tenants.

“There are specialist providers who are better suited for customers in this circumstance.”

Habito admitted that it should not have advised McAleer to take out a deal with NatWest.

The digital broker is to pay any early repayment charges, as well as additional costs including new mortgage fees and charges.

A spokeswoman for Habito said: “We are aware of this issue and have been working with Ms McAleer to resolve it.

“We fully acknowledge that the buy-to-let mortgage product we initially advised her on was not appropriate, in light of Natwest’s policy on DSS tenants.

[It’s clear this policy has been in place some time, as the ‘DSS’ is no more, and was replaced with the DWP some years back.]

“With that, however, we are currently advising Ms McAleer on a remortgage and we will be bearing all the costs associated with it.

“Ms McAleer will not be financially impacted by this, nor will she need to make any changes relating to her current tenants.

“Great customer service is of the utmost importance to us at Habito and we look forward to resolving this matter swiftly and to Ms McAleer’s complete satisfaction.”

Lenders with outdated acronyms and outdated attitudes

If you check out the rental listings on websites such as Rightmove, or browse the window of your local lettings agent, you will often see “No DSS”. It means the landlord or agent won’t rent a property to someone on housing benefit or local housing allowance, though some younger readers might not even know what “DSS” stands for (it’s Department of Social Security, and was replaced by the Department for Work and Pensions 16 years ago).

 A number of brokers told Mortgage Solutions it is difficult to find deals for landlords with tenants on benefits. 

Too many lenders have “draconian criteria” based on ‘particular views’ of tenants on benefits, according to Steve Olejnik, managing director of Mortgages for Business.

He said: “It’s a very outdated view of the type of property that attracts people on benefits… that they’re not going to look after the property properly and therefore going to potentially damage the security.

“I just think it’s wrong.”

Whether a tenant is claiming benefits shouldn’t affect the risk of the mortgage, so in theory there is no reason why banks or building societies will not lend, Olejnik added.

He said: “Lenders are underwriting the landlord. A decision to lend should be based on the borrower’s credit profile and ability to pay along with the quality of the security provided.

“It is irrelevant whether the tenant is in receipt of benefits and should not add any bearing to the risk decision.”

Olejnik has called for legislation to stop lenders discriminating against tenants.

Simon Nunn, executive director of member services at the National Housing Federation, said: “While there are still a handful of lenders that operate these kinds of outdated policies, the majority have abandoned these restrictions.

“Rightly, they recognise that banning tenants on housing benefit is both unfair and unenforceable, based on false assumptions and stigma attached to people who receive welfare support.

“We’d encourage all lenders to follow suit by scrapping these restrictions – there needs to be a step-change across the sector to get away from the view that tenants on housing benefit are unwelcome.

“This needs to be matched by renewed commitments from letting agents, insurers, landlords themselves and the government that they will not allow people on housing benefit to be excluded from the rental market.”

Shelter has a guide on convincing a landlord to rent to you. It says local councils may keep lists of private landlords who accept tenants on housing benefit, and that some websites such as SpareRoom allow you to select a “DSS OK” filter. There is also a website called Dssmove that connects tenants with agents and landlords “that say yes to DSS”.

Smartmove can also help tenants make a claim for housing benefit and Discretionary Housing Payments.

The House of Commons Library has produced a briefing on this issue. 

 


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Meet Liam and Michelle. It’s time to listen to the voices of homeless people about the fatal flaws of Universal Credit

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On Wednesday, I travelled down to Westminster to meet with John McDonnell, Margaret Greenwood, Mike Amesbury and Marsha de Cordova and a group of disability rights campaigners, journalists, researchers and organisations. One of the issues we discussed during the meeting was the harm and distress that the roll out of Universal Credit is creating for some of our citizens.

I got back from my trip to the Commons, arriving by train back in Newcastle around eleven, I missed the last bus back to Durham. Outside of the train station, I met Liam, a young homeless man, and his partner, Michelle.

Liam told me that the couple became homeless because of the inbuilt failure of Universal Credit to support people both in and out of work. Liam took some temporary work over last Christmas, and was promised that there would be full-time posts in the new year. However there was no full-time work available, and Liam explained that although they had claimed Universal Credit over this period, the couple didn’t receive any support at all. As the work was part-time and the pay was low, Liam and his partner ran up rent and council tax arrears very quickly, as they could not afford to meet their basic living costs. 

When Liam’s part-time work ended, he was told at the job centre that he had to start a new Universal Credit claim. Yet government ministers have assured us that this doesn’t happen. It was during this time that the couple ended up with arrears which led to their eviction. The housing association that the couple rented their flat from significantly pressured Liam into signing an eviction order that was effective immediately. The couple lost most of their belongings as well as their home. 

Liam told me “Once this happens, it is so hard getting out of the situation”. He explained to me that when they became homeless, the couple were told at the job centre that they could no longer claim any welfare support, because they have no fixed abode. (*See below.)

The situation has quickly spiralled downwards. Liam also said that many people are just one pay cheque away from homelessness, but they don’t realise that until it happens to them.

As Liam and Michelle are originally from another regional city, they cannot access  Newcastle Crisis for help. Michelle has PTSD, she cannot access any support for her mental health conditions, and Liam is understandably worried about her safety and mental wellbeing on the streets. It struck me how very much they both cared deeply for each other

I made sure they have some accommodation for tonight, at least. I’m not well off but gave them what I had. Liam told me he hasn’t slept for several nights, because he has to keep Michelle safe. They have to pay £15.50 for a temporary room for the night. That is the only available help they can access. As the couple cannot claim any welfare support, the fact that temporary accommodation costs them money, and of course they need to eat, leaves them with no choice whatsoever but to beg. They do access ‘People’s Kitchen’ in the city, too. But although it helps in providing food sometimes, it isn’t adequate provision for people who are homeless 24/7.

What struck me most about this couple is how friendly and humble they were, and that they are both such lovely people. One word that kept cropping up over and over in my dialogue with them was ‘invisible’. Our whole society looks the other way. Liam told me it is always assumed that homeless people are substance abusers, yet neither Liam nor Michelle drink alcohol or use drugs. It’s distressing enough to end up homeless without the additional prejudices and stigma attached to it. 

I also witnessed first hand how the local police are trying to clear the streets and prevent begging. They are prosecuting homeless people. I was asked by a policeman how long I was planning on interviewing Liam and Michelle, but what he really meant was ‘How long are you going to provide an excuse for them to be here?’ 

Often, anti-social behaviour powers are used to ban activities often associated with rough sleeping, and concerns have grown that an increase in the use of these powers is criminalising homelessness and is not addressing the root cause of the problem. 

Begging is also an offence under section 3 of the Vagrancy Act 1824 (as amended). It is a recordable offence. The maximum sentence is a fine at level 3 on the standard scale (currently £1000). I’m wondering how people that cannot afford a roof over their head and need to beg for food would manage to somehow produce money to pay a fine.

Other provisions also criminalise ‘begging behaviour’: wilfully blocking free passage along a highway is an offence contrary to section 137 of the Highways Act 1980 (as amended), punishable by a level 3 fine. Using threatening or abusive words or behaviour is an offence under section 5 of the Public Order Act 1986, which also carries a level 3 fine. 

Voluntary sector organisations have voiced concerns that the use of anti-social behaviour powers to tackle rough sleeping is criminalising homelessness and leaving vulnerable people in an even more marginalised position. According to Liberty, a Human Rights organisation, “PSPOs don’t alleviate hardship on any level. They are blunt instruments which fast-track so-called “offenders” into the criminal justice system”. Liberty has urged the Government to rethink these powers: “handing hefty fines to homeless people … is obviously absurd, counterproductive and downright cruel”.

There is also a concern that enforcement activity in one area simply displaces street activity to another geographical area, and can sometimes lead to the displacement of activity (e.g. from begging into acquisitive crime). Moreover, it does not address the underlying causes of rough sleeping.

There was a notice up on the train station door that said begging is illegal. Liam has been prosecuted twice under section 35, and a dispersal order was served on him, preventing him from returning to the area for 48 hours. The policeman was stiffly polite, but he hovered around waiting for me to leave, which was a little intimidating. I told him I would hold conversation with whoever I chose to. I felt that Liam and Michelle were being harassed.

It was a stark contrast to the experience of homeless people outside of King’s Cross station that I witnessed. While I was chatting to them, a charity group arrived with a table and some food, which was set up right outside. The policeman there was friendly with the homeless group and chatted to them, while they ate their meal. 

Prior to becoming homeless, Liam had no criminal convictions. Now he has been criminalised for begging because he is homeless. He also told me he stole food on one occasion from the shop Greggs because the couple were starving. They seldom have enough food to get by, and the impact of hunger on their health is a major concern. 

Health care for homeless people is a major public health challenge. Homeless people are more likely to suffer injuries and medical problems from their lifestyle on the street, which includes poor nutrition, exposure to the severe elements of weather, and a higher exposure to violence (robberies, hate crime, beatings, and so on). Yet at the same time, they have little access to public medical services or clinics, in part because they often lack identification or registration for public health care services. There are significant challenges in treating homeless people who have psychiatric disorders because clinical appointments may not be kept, their continuing whereabouts are unknown, their medicines may not be taken as prescribed and monitored, medical and psychiatric histories are not accurate, and for other reasons. 

Yet despite the fact that the couple have had no support at all, Liam has gone into the job centre and local library pretty much every day to look for work. He has finally found a painting and decorating job, which he starts on Monday.  Imagine just how difficult it is to do this without access to a regular bed, clean clothes and washing facilities.

Article 25 of the Universal Declaration of Human Rights, adopted 10 December 1948 by the UN General Assembly, contains this text regarding housing and quality of living:

“Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.”

As a society, we seemed to have forgotten this fundamental human right in the punitive political era of citizen ‘responsibilities not rights’. But I have yet to see a homeless person successfully punished out of being homeless.

Prior to 1983, the term homeless implied that economic conditions caused homelessness. However, after 1983, under the neoliberal regime of Margaret Thatcher, conditions such as alcoholism and mental illness also became associated with the term in the media. This narrative was often backed up with testimony made by high-ranking Conservative officials. Yet one of the major causes of home;essness is a lack of sustainable employment and adequate wage levels.

This stigmatising approach rested on the notion that the people who are sleeping on the streets are those who are homeless by choice. I have no idea how this narrative of blaming the victims of neoliberalism gained traction, but somehow it has. It is being used to drown out the voices of those that have been failed by dismal neoliberal policies.

This claim – that homelessness is about ‘personal choice’ and an individual’s cognitive and  psychological condition, untethered it from the broader structural context, and in particular, from the New Right’s neoliberal reforms sweeping through the socioeconomic system. In the broader sense, it tended to portray homelessness as something that would exist even under the best economic conditions, and therefore independent of economic policies and economic conditions.

Homeless people may find it difficult to vote as they have no fixed address, they may not have identification documents, or a mailbox. However, equal access to the right to vote is crucial in maintaining a democracy. 

One effect of the political and media stigmatising and dehumanising project has been a total social exclusion. Homeless people experience a profound isolation. This gives the homeless community no say in how things are. Neither government nor wider society listen to them or consider their accounts of their experiences. 

Yet we can’t claim to live in a democracy when increasing numbers of citizens facing destitution and living in absolute poverty are excluded politically, economically, culturally and socially.

The only way that things will ever change for the better is if we do listen. And hear about the lived experiences of Liam, Michelle and the growing numbers of others who have been made destitute by a broken system.

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*It’s important that people know they are still eligible for Universal Credit if they become homeless.

If you are told you are not at the job centre, you should challenge this.

“There is some confusion around whether or not homeless people can claim Universal Credit. 

“I would like to reassure people that support is available, and it’s incredibly important that people who are homeless – whether they’re rough sleeping, sofa surfing or living in temporary accommodation – should, and are able to, receive this support.

1. People can receive Universal Credit without an address

Usually when a person makes a claim for Universal Credit, they are asked to provide an address to register their claim to. 

If a person doesn’t have a fixed address they can register their hostel or temporary accommodation as their address, and if they’re rough sleeping they can use the job centre address.

2. People don’t need ID to receive Universal Credit

Undoubtedly, having ID makes the process of applying for Universal Credit simpler and quicker but in cases where a person doesn’t have ID, work coaches can use other methods to identify a person and help them make a claim.

This isn’t just for people who are homeless, but could be used in other situations as well, such as for people who have lost belongings in a fire or flood, or if they’re fleeing domestic violence.

3. You don’t need a bank account to receive Universal Credit

Having a bank account is important, and it makes it easier for people to make payments, manage money and get into work.

But we understand that a homeless person may not necessarily have a bank account. There are measures in place to make payments through other methods, including post office accounts or the Payment Exception Service, and a work coach can help people through the process of setting up a bank account when appropriate.

4. Finding a home is prioritised over finding work

You can ask Job centre staff to apply an ‘easement’ of up to one month, which means a person is not asked to look for work during this period and can focus on finding suitable accommodation. 

Work coaches have the discretion to extend the easement period further, depending on a person’s circumstances.”

If you are told that you can’t claim Universal Credit because you are homeless or have “no fixed abode”, tell the job centre advisor that:

Justin Tomlinson,has said you CAN. 

Liam and Michelle, if you are reading this, wishing you the very best, and good luck with your new job, Liam. Hoping that it will help you secure somewhere to live quickly. x

Related

Two very vulnerable homeless men left to die in sub-zero temperatures

Please don’t just walk on by, we are better than this

Government backs new law to prevent people made homeless through government laws from becoming homeless

From the abstract to the concrete: urban design as a mechanism of behaviour change and social exclusion

Conservative MPs accuse citizens of ‘scaremongering stories’ about experiences of Universal Credit.

 


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Universal Credit bereavement run-on payments have been scrapped

For single use only on 10 March 2017

The government claim they value “evidence-based policy”. However, no-one knows exactly what evidence was found to justify Universal Credit, or how and why it may be applied to dismantling publicly funded social security provision for the public.

A grieving family have been forced to pay their loved one’s rent for three weeks following his death.

Ronnie Cowan, the MP for Inverclyde, has spoken out in parliament about the shocking treatment of one of his constituents because of callous Universal Credit rules concerning bereavement.

The Department for Work and Pensions have decided that if a Universal Credit claimant dies, regardless of when, they are classed as having died from the start of their four week assessment period, which can result in families being liable for their rent payments, and possibly council tax. This means that the government is outrageously clawing money from people for up to three weeks before they die and from their bereaved families. 

Cowan said: “Once again, we witness the callous nature of the Department for Work and Pensions, which classes as person as dead from the beginning of their assessment period, even if they die towards the end of that period.

“This means that family members had to meet the cost of the housing rent for a period of three weeks as the payment was stopped from the beginning of the assessment period.

“This is fundamentally wrong and highlights the cruel nature of the current system which is not fit for purpose.”

The MP has asked the government how many more families have been affected in this way because of the Universal Credit bereavement regulations.

These latest concerns follow a recent critical report from the National Audit Office (NAO) that raises questions about Universal Credit being ‘value for money.’

Employment minister Alok Sharma wrote a letter to Cowan offering his sympathies to the family involved and explained the system they use.

Not surprisingly, Cowan says that all social security powers should be passed to the Scottish Government so that a more compassionate system can be put in place.

He added: “This is something which is clearly lacking from this UK Government.

“I will be writing to the minister to ask that they sort out this issue.”

A spokesperson for Department for Work and Pensions told me: “The death of a claimant is a relevant change of circumstances affecting entitlement to Universal Credit. When a single claimant dies there are no further payments due. For the purpose of the award calculation, the death is treated as if it occurred at the beginning of the assessment period. 

“If an overpayment is caused because one member of a couple dies, an overpayment decision should be made as usual. The overpayment will be recoverable from the surviving partner.”

However, I found a universal credit full service guidance placed by the government in the House of Commons library (in the deposited papers archive.) The guidance was originally placed in the Commons library in October 2016 at the request of the then Work and Pensions Minister Lord Freud. In the death and bereavement section of the document, it says:

Bereavement run-on

“In some circumstances, payment of Universal Credit that would otherwise reduce or stop following bereavement can continue for a short time. This is called a Bereavement run-on. For example, following the death of a:

partner
 child
 person for whom the claimant was carer, see Claimant with regular caring
responsibilities
Non-dependants 

Payment of Universal Credit continues as if the person had not died for the assessment period in which the death occurs and the following two assessment periods.

The surviving member of a couple will receive a 3 month run-on for:

 the assessment period in which their partner dies
 two subsequent assessment periods 

When the 3 month run on period has ended, the surviving member of the couple will need to re-declare their circumstances. This is so a single award of Universal Credit can be made (without the need for a new claim).” 

That would be a reasonable and humane approach. 

However, later in the subsection entitled “Debt and deductions after death”, there is no further mention of the bereavement run-on. It looks as if someone with an incapacity for human compassion has amended the guidance and neglected to take out the original kinder version of the regulation guidelines. The document says:

“If an overpayment is caused because one member of a couple dies, an overpayment decision should be made as usual. The overpayment will be recoverable from the surviving partner. 

“An overpayment of housing costs paid direct to a landlord can occur due to the death of the claimant. The overpayment is only recoverable from the landlord if they had failed to disclose the death of their tenant. 

“An example is if they were aware of the death and failed to report it. Otherwise, the overpayment would be recoverable either from the estate of the deceased or any surviving partner of the Universal Credit claimant.

“The death of a claimant is a relevant change of circumstances affecting entitlement to Universal Credit. When a single claimant dies there are no further payments due. For the purpose of the award calculation, the death is treated as if it occurred at the beginning of the assessment period.”

The document also says that the Department for Work and Pensions conduct a search  for an estate in respect of all ‘customers’ who die while in receipt of Universal Credit. A comparison is then made between the information provided for the Universal Credit claim and the assets declared in their estate. 

If a person dies with outstanding debt and they leave an estate, the Department becomes a creditor of their estate. As a creditor, a claim is normally made from the estate for debts such as:

 recoverable overpayment
 Administrative Penalty
 Social Fund loan

People pay tax and national insurance to contribute towards public services, including their social security, should they fall on hard times and require support from public funds. The Conservative government now expect people to pay twice for a barely adequate provision administered within a punitive framework, and delivered within a hostile environment.  

We really need to question such an openly hostile and dehumanising system of social security that not only fails to support people, it also fails to recognise, acknowledge and accommodate the actual date that a person dies, and it fails to afford their loved ones some respect, solicitude, support, dignity and time to grieve in peace. Private moments of grief and emotional space are being heartlessly hijacked by the relentless machinery of the state.

This level of disgraceful dystopic bureaucracy potentially transforms the time in the immediate aftermath of the loss of a loved one from one of private grief and adjustment into one of inexcusable state intrusion and surveillance, and a profoundly distressing struggle for bereaved families. 

The government claims that Universal Credit is designed to make sure that “work pays” and is aimed at “incentivising” people to move into work. The Conservatives clearly think that this may be achieved by ensuring conditions for people needing support are made unbearable. Conservative ministers have also claimed that welfare “puts in place barriers to people fulfilling their potential.”

Image result for maslows hierarchy

This is a poltitically expedient reversal of Abraham Maslow’s hierarchy of human needs. Punitive measures and a hostile environment cannot “help” people into work, nor can it alleviate poverty. It can only increase poverty and make people’s lives even more difficult, disempowering them further because of the additional burden of state inflicted cruelty on them.

History and the social sciences have provided ample empirical evidence that it is poverty, rather than a “lack of incentives,” which reduces people to an inescapable struggle for survival, preventing them from fulfilling their potential.

If people cannot afford shelter, food and fuel – basic survival requirements – how can any rational person expect that those citizens will somehow manage to extend their already very stretched, all-consuming cognitive priority and motivation for basic survival to also meet state demands for meeting unreasonable conditionality, job searching or work requirements?

Benefits Sanctions
Here is an example of severe hardship created by Universal Credit from a parlimentary debate in October last year, which took place because of an Early Day Motion (EDM) tabled by Debbie Abrahams:

Neil Gray Shadow SNP Spokesperson (Social Justice)

At the start of the year, Mr James Moran from Harthill in my constituency qualified as an HGV driver and managed to find work on a zero-hours contract as a driver while also receiving universal credit—exactly the sort of scenario under which universal credit was supposed to work better. Not long after gaining employment, however, Mr Moran was sanctioned, despite being in employment. As he started the process of appealing the sanction, he suffered a stroke, which meant that he was no longer able to work as a driver.

As the sanction was still in place, he returned home from hospital with no means of receiving an income. Despite getting some help from his elderly parents, Mr Moran struggled with no money whatever for more than a month. He then suffered a second stroke.

Mr Moran has advised me that the doctors who treated him in hospital at the time of his second stroke admission told him that the low blood pressure that caused the second stroke was almost certainly caused by malnourishment. That malnourishment was a direct result of a DWP sanctioning error, forcing Mr Moran to live without an income—to live on fresh air.

I wrote to the Secretary of State about the case on 1 September and have repeatedly chased his office for a reply, but I have received nothing in return to date. The six-week minimum wait appears to be built into the Secretary of State’s correspondence turnaround as well. I do not take that personally, because I gather from press reports that the Chair of the Select Committee on Work and Pensions has had similar problems with getting the Secretary of State to put pen to paper. Perhaps he will now chase a reply.

A little later in the debate, in the face of much evidence to the contrary, Iain Duncan Smith shamefully alleged that the opposition were largely “‘scaremongering’ about the way in which the [Universal Credit] system has been designed.”

Universal Credit is clearly NOT an “evidence-based” policy, as claimed, since its architects and other government ministers refuse to recognise any evidence that contradicts their narrow ideological prejudices and assumptions. 

As Gordon Allport once commented, a prejudice, unlike a simple misconception, is actively resistant to all evidence that would unseat it.

 

 


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Esther Mcvey forced to apologise for being conservative with the truth

euphemisms

In my previous article, I discussed the outrageous responses that the Department for Work and Pensions minister and petty tyrant, Sarah Newton presented to Shadow Disabilities Minister Marsha De Cordova, who had once again raised the fact that the United Nations (UN) had found “grave and systematic violations of disabled people’s rights” in the UK.

The Labour MP also said yesterday in parliament: “This government’s policies have created a hostile environment causing grave violations on disabled people.”

Newton responded to these serious and valid concerns by an act of scandalised denial, outrage, vindictiveness, blaming the messengers, telling lies and by using gaslighting tactics.

Gaslighting is an intentional, malicious and hidden form of mental and emotional abuse, designed to manipulate others, creating self-doubt and insecurity. Its aim is to redesign and edit people’s experiences and accounts of reality, replacing them with someone’s own preferred and more convenient version, by persistently altering the perceptions of others, to confuse and disorientate them. Like all abuse, it’s based on the need for power, control, and very often, concealment. It’s far more damaging than simply lying, because it is intended to control, hurt and silence others. It’s a strategy very commonly used by psychopaths, bullies, despots and the Conservatives to ensure they get their own way. 

The government often use doublespeak – language shifts entailing words such as “reform”, “fair”, “support” and “help”- to disguise the horrible impacts of their extraordinarily draconian welfare policies and austerity programme, and to divert public attention. People who object to the harms that Conservative policies cause are told they are “scaremongering”. This is a form of gaslighting. It indicates that the government have no intention of changing their punitive policy approach or remedying the harms and distress they have caused.

The Conservatives have shown very strong tendencies towards socially illiberal and authoritarian attitudes over the past seven years. Furthermore, they aren’t exactly a party that designs policies to bring delight to the majority of ordinary citizens. Ministers regularly use a form of Orwellian Torysplaining and scapegoating to attempt to discredit and invalidate citizens’ experiences of increasing economic hardships and vulnerability  – particularly those of marginalised groups – caused directly by punitive Conservative policies. This is certainly an abuse of political power.

The Conservatives have a long track record of determined authoritarianism and telling lies. See for example A list of official rebukes for Tory lies and Dishonest ways of being dishonest: an exploration of Conservative euphemisms.

Today, cabinet minister and creature of habit, Esther McVey was rebuked for telling lies ‘misrepresenting’ the National Audit Office’s (NAO) very critical report on the roll-out of Universal Credit with a series of ‘inaccurate’ claims to MPs. The NAO is the government’s spending watchdog.

The NAO took the highly unusual step after the work and pensions secretary dismissed the catalogue of failings outlined by auditors last month in their report into the government’s flagship welfare programme.

In his open letter to McVey, which is likely to raise questions about her future as a cabinet minister, the Auditor General, Sir Amyas Morse, said that elements of her statement to Parliament on the report were lies “incorrect and unproven.”

He said it was “odd” that McVey told MPs that the NAO did not take into account recent changes in the administration of universal credit, when the report had in fact been “fully agreed” with senior officials at the Department for Work and Pensions only days earlier. 

Sir Amyas added that McVey’s claim that the NAO was concerned that Universal Credit was rolling out too slowly was “not correct”. 

The NAO report concluded that the new system – being gradually introduced to replace a number of benefits – was “not value for money now, and that its future value for money is unproven”.  

The authors of the report also accused the government of not showing sufficient sensitivity towards some claimants and failing to monitor how many are having problems with the programme, or have suffered hardship.

In his letter, Sir Amyas told McVey: “Our report was fully agreed with senior officials in your Department. It is based on the most accurate and up-to-date information from your Department. Your Department confirmed this to me in writing on Wednesday June 6 and we then reached final agreement on the report on Friday June 8.

“Her assurance, in response to the report, that Universal Credit was working was also “not proven.” 

He continued: “It is odd that by Friday June 15 you felt able to say that the NAO ‘did not take into account the impact of our recent changes’.  

You reiterated these statements on July 2 but we have seen no evidence of such impacts nor fresh information.”

Sir Amyas added: “Your statement on July 2 that the NAO was concerned Universal Credit is currently ‘rolling out too slowly’ and needs to ‘continue at a faster rate’ is also not correct.”

And he told McVey: “Your statement in response to my report, claiming that Universal Credit is working, has not been proven. 

“The Department has not measured how many Universal Credit claimants are having difficulties and hardship. What we do know from the Department’s surveys is that although 83% of claimants responding said they were satisfied with the Department’s customer service, 40% of them said they were experiencing financial difficulties and 25% said they couldn’t make an online claim.

“We also know that 20% of claimants are not paid in full on time and that the Department cannot measure the exact number of additional people in employment as a result of Universal Credit.”

The Auditor General said that he had written to McVey on June 27 asking for a meeting to discuss her comments, and was publishing his open letter “reluctantly” because he had not yet been able to see her. McVey has a history of showing disdain for democractic norms and the protocols and mechanisms of transparency and accountability.

Now the Work and Pensions Secretary is facing calls to resign, after admitting that she had told lies “inadvertently misled” parliament. 

You can hear her full statement here. She doesn’t look appropriately humble, sincere or ashamed, however: 

Related

I’m a disabled person and Sarah Newton is an outrageous, gaslighting liar

 


 

I don’t make any money from my work. I am disabled because of illness and have a very limited income. But you can help by making a donation to help me continue to research and write informative, insightful and independent articles, and to provide support to others. The smallest amount is much appreciated – thank you.

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Very important consultation on the migration of people onto universal credit from legacy benefits

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The Social Security Advisory Committee (SSAC) has launched an important public consultation on the government’s proposals for moving all existing claimants of a working age income-related benefit to Universal Credit.

From next year the Department for Work and Pensions (DWP) will begin the process of moving claimants in receipt of one or more of the following benefits to Universal Credit:

  • Working Tax Credit
  • Child Tax Credit
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit

The wide-ranging draft legislation, which was presented to the Committee for scrutiny at its meeting on 20 June 2018, sets out the government’s proposals on:

  1. requirements for claimants on existing benefits to make a claim for Universal Credit (including the deadlines for doing so) and arrangements for ending their existing benefit
  2. the calculation, award and ongoing treatment of transitional protection

The task of safely moving around 3 million claimants (in around 2 million households) from legacy benefits to Universal Credit raises important questions about the delivery challenge facing the department and the potential impact on claimants.

SSAC has therefore decided to examine this draft legislation, and the impacts that flow from it, in more detail. To help inform this work, the committee would welcome evidence from a broad range of organisations and individuals who have good insight into and/or experience of the following aspects of these proposals:

  • the overall migration timetable
  • arrangements for contacting claimants and inviting claims from them
  • issues associated with making a claim, and ending legacy benefit claims
  • the calculation of transitional protection (including the treatment of earnings and capital)
  • the impact of proposed transitional protection (including how easily it will be delivered and the degree to which it will be understood by claimants)
  • the impact on workers, including the self-employed
  • equality impact (whether there will be particular effects for different groups and how these can best be addressed), for example are there any groups that will not be covered by transitional protection?
  • monitoring and evaluation

The Committee would welcome responses to ensure that its advice to the Secretary of State for Work and Pensions is informed by a range of perspectives. The committee would welcome real or hypothetical case studies or specific examples as part of that evidence.

Paul Gray, the Committee’s Chair, said:

“The planned rollout of Universal Credit is now reaching its most critical and challenging stage. The government’s draft proposals involve major issues on both detailed entitlement rules and delivery logistics, and are due to be debated in Parliament later this year. SSAC is keen to ensure that the scrutiny report it submits to ministers and Parliament is as well-informed as possible, and we therefore strongly encourage all organisations and individuals with relevant evidence to take part in this consultation process.”

The government has said that migration onto Universal Credit will take place between 2019 and 2023. Under the recent government proposals, people currently receiving Employment and Support Allowance (ESA) will receive a letter informing them that their benefits will be stopped and asking them to make a new claim to Universal Credit. The proposals suggest people will be given between one and three months to do this, with some circumstances in which that would be extended.

Some thoughts on the government’s proposals

The ‘managed migration’ entails claimants making a new claim for Universal Credit, which could mean that people with health problems may see their benefits stopped entirely while they struggle with the difficult and lengthy process of applying for Universal Credit. These are people who have already been through a rigorous and stressful assessment process and declared eligible for benefits because they are disabled or unwell. A gap in support for ill or disabled or people would leave them very vulnerable, and may have distressing and potentially harmful consequences.

It’s not as if the government have a particularly good track record on managing migrations. It’s difficult to find any good faith regarding the ‘managed’ transition to Universal Credit for so many people from a complex variety of legacy benefits, when the Conservatives’ welfare ‘reforms’ have had such a profoundly damaging effect on so many people already. This is because the word ‘reforms’ has been used to euphemise cruel austerity cuts that have fallen disproportionately on the poorest citizens.

Nor have the government demontrated that they are particularly observant of human rights frameworks and equality legislation. In fact their track record indicates they hold such safeguards and mechanisms of accountability in contempt.

This is a good reason why the 50 page poorly worded government document requires very careful scrutiny via a consultation. It’s not appropriate or adequate for the government to adopt a ‘test and learn’ approach that lacks safeguarding measures for those at risk of vulnerability through a cut or delay in their lifeline income, while the government attempts to get this right through trial and error at their expense. 

The ‘safeguards’ that government has proposed simply do not address the concern that people will be left without a source of income during the migration. It’s completely unfair to place all the responsibility on severely unwell people to have to reapply for a new benefit and risk losing their income in the process.

The government should take full responsibility for migrating ill and disabled people onto Universal Credit smoothly and safely while protecting their income, health and wellbeing. 

If people have to make a claim for Universal Credit due to a change in circumstances, such as moving house, or living with a new partner, rather than simply being migrated from the legacy benefit, that may also potentially place at risk any transitional protections they would have been entitled to, such as the severe disability premiums that some people are entitled to on ESA, since those are not included in Universal Credit. It’s also not clear if such a group would have to go through reassessment. That would also cause hardship and distress, because of the long waiting period between assessments, mandatory review and appeal.

Originally, the government had implied that migration from ESA to Universal Credit would not entail having to make a claim, and that provided the claimant’s circumstances have not changed, they would receive a transitional protection to compensate for the loss of the severe disability allowance and other amounts under legacy benefits which are not covered by Universal Credit. 

A regulation [2(6)] has been ‘inserted’ which will introduce a ‘Gateway Condition’ into previous social security regulations from 2014, so that claimants who are receiving:

  • income-related Employment and Support Allowance (ESA(IR);
  • income-based Jobseeker’s Allowance (JSA(IB));
  •  Income Support (IS); or 
  •  HB; 

and have the Severe Disability Premium (SDP) included in their award will not be
able to claim UC. Instead, rather than naturally migrate to UC, they will remain on
their existing benefit if they have a change of circumstance that would require a new claim for a benefit that UC is replacing to be made.

This is because of a recent landmark High Court ruling, earlier this month, in which the Court ruled that the Department for Work and Pensions (DWP) unlawfully discriminated against two severely disabled men, who both saw their benefits dramatically reduced when they claimed Universal Credit, as they lost their SDP under Universal Credit rules. 

However, there is no clear mention in the document of what will happen to those who receive Enhanced Disability Premium (EDP) on ESA, which is also not payable under Universal Credit. Also, there needs to be more discussion and debate around clarifying the details of how the tapering of transitional protections is going to happen, and indeed, if this should happen at all. 

It’s difficult to forget that disabled people who were ‘migrated’ from Disability Living Allowance (DLA) to Personal Independent Payment (PIP) were also ‘invited’ to apply for PIP following notification of their claim for DLA being closed, which meant facing reassessment. Many people lost their eligibility for this lifeline support, and others were assessed as eligible for only part of an award, leaving them with rather less money than they had before they claimed PIP. Many have lost their motability vehicles as a consequence of losing the mobility component at reassessment for PIP.

These are just some of the worrying issues that the government’s latest proposals raise, which need to be addressed. We need to respond collectively to this consultation as a matter of urgency. 

The overall effect and impacts of the proposed amendments placed before the Committee, outlined in the 50 page government document, are to be subject to a government ‘test and learn’ approach to implementation. It is unacceptable that those migrated first onto Universal Credit are regarded by the government as a sort of group of experimental test cases, when a rigorous impact assessment would have been much more appropriate to safeguard these citizens from hardships and distress created by government policy and administration.

People who need social security, paid for by the public, among whom are people needing social security support, and those who may in the future, are not lab rats for the government to experiment on without their consent. Most unemployed, underemployed, disabled or ill people have contributed to the Treasury and deserve better management of their money, adequate provision and rather more competent policy administration by the government.

Having read through the government proposal document, it does say that there are certain protections for claimants who have a disability or a health problem when they ‘transition’ to UC from ESA or incapacity benefits. Such protections include:

  • ensuring that a capability for work determination for ESA can automatically be applied to the UC award; and 
  •  paying the Limited Capability for Work addition in UC if they have been continuously entitled to ESA and entitled to the Work-Related Activity Component in ESA prior to 3rd April 2017. 

Glancing through this document, it not very clearly outlined what will happen to those people with a more recent award of the Work-Related Activity Component, or to those where there has been a break in their previous entitlement since April 2017. 

Regulation 19 states that in cases where ESA claimants had the Support Component (SC) or Work-Related Activity Component (WRAC) applied to their award immediately before they make a claim for UC, if ESA claimants have the SC applied to their ESA award, the Limited Capability for Work and Work-Related Activity (LCWRA) element in UC would be applied to their UC award, without the need for a Work Capability Assessment (WCA), from the start of their first (UC) assessment period.

An assessment period is one month. Entitlement to Universal Credit depends on your circumstances and your income in each complete assessment period. This potentially introduces a degree of uncertainty for people on long-term disability support, who rely on a degree of financial security to manage day-to-day living with additional needs. 

UC is ordinarily paid monthly in arrears, and there is very little discussion in the government proposal document about how the gap will be bridged when legacy benefit claims are closed. There is mention that in some circumstances, where a claim for full housing benefit is in place, people migrated onto Universal Credit may claim a kind of ‘run on’, for a two-week period. However, housing benefit is always paid in arrears, and the two week run-on would simply cover the period of arrears from legacy benefits.

Regulation 20 states that with cases where the ESA assessment phase has not ended at the point the claimant claims UC, any unspent portion of the 13-week ESA assessment phase is carried forward and, if awarded, the appropriate UC element will apply. 

The proposed regulations will be subject to the affirmative resolution procedure and, as such, will need to be debated in both Houses of Parliament. Affirmative procedure is a type of parliamentary procedure relating to statutory instruments (SIs), which are traditionally reserved for non-controversial policies. 

An SI laid under the affirmative procedure must be actively approved by both Houses of Parliament. Certain SIs on financial matters are only considered by the Commons. However affirmative resolution SIs require the approval of Parliament.

SSAC is an independent advisory body of the Department for Work and Pensions. The Committee’s role is to give advice on social security issues; scrutinise and report on social security regulations (including tax credits) and to consider and advise on any matters referred to it by the Secretary of State for Work and Pensions or the Northern Ireland Department for Communities.

The Committee’s Chair is Paul Gray. Its membership comprises: Bruce Calderwood, David Chrimes, Carl Emmerson, Chris Goulden, Philip Jones, Jim McCormick, Grainne McKeever, Dominic Morris, Seyi Obakin, Judith Paterson, Charlotte Pickles, Liz Sayce and Victoria Todd.

Most social security regulations go before SSAC for scrutiny, the only significant exceptions being regulations which go to other advisory bodies or set benefit rates. When SSAC has considered regulations which it has asked to be formally referred, its response is made in the form of a report to the Secretary of State for Work and Pensions. That report must be presented to Parliament when the regulations are laid with a statement from the Secretary of State showing what has been done (or is intended to be done) about the SSAC’s recommendations (section 174(1) and (2) of the Social Security Administration Act 1992).

Please read the regulations and explanatory memorandum in full if you intend to send a response regarding the consultation.

Responses should be submitted to the Committee Secretary by no later than 10am on Monday 20 August:

The Committee Secretary 
Social Security Advisory Committee 
5th Floor 
Caxton House 
Tothill Street 
London 
SW1H 9NA 

Alternatively responses can be emailed to – ssac.consultation@ssac.gsi.gov.uk

I will need to read through all of the government proposals carefully in order to make my own full response, which I’ll publish in due course.

And of course, Universal Credit, its impact, adequacy and performance as a form of social security, needs some more careful scrutiny, too. 

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I don’t make any money from my work. I’m disabled through illness and on a very low income. But you can make a donation to help me continue to research and write free, informative, insightful and independent articles, and to provide support to others. The smallest amount is much appreciated – thank you.

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